Vietnam needs to build dreams slowly

6 Mar

In the past, Vietnam people sacrificed themselves to chase away the US army from their land. Thirty years later, however, Bill Gates, an American tycoon, received pop-star reception when he visited the country. What a turn of events.

Now the younger Vietnamese warmly welcome capitalism, a concept largely promoted by the US. It has made the country wealthier. But, it seems that it is still not ready to embrace capitalism so rapidly. Last week, the Time magazine highlighted the unregulated over-the-counter stock market situation.

Most of the stocks traded in the gray market belong to the state-owned companies that were privatized during the free-market movement in 1980s. The companies’ financial accounts are neither checked nor published. The investors can only rely on rumours and can easily be manipulated. The government is trying to impose tighter rules, but practically unable to do the clean up soon. According to the magazine, there are only 10 inspectors to oversee thousands companies.

Unlike the US, Vietnam has only opened its arms to capitalism since 1986. If Vietnam government is to follow the US footsteps more successfully, it should also draw lessons from the US’s hits and misses so far, and improve its market systems based on this knowledge. Vietnam does not have to experience the failures. It can create the suitable regulated systems, and educate its people to take advantage of capitalism and avoid the drawbacks.

The Time magazine ends the piece with ‘The madness of crowds, it seems, is alive and well”. But, the problem is much more urgent than portrayed. If the government does not act soon, the country may experience more negative than positive sides of capitalism. ____________________________________________________________________
1 – The Economist – February 10 2007
2 – BBC news.


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